RETAILER’S PLANS: Six Toys ‘R’ Us stores in year 1
Published on October 12, 2005
US giant eyes 13 local outlets within five years. Toys “R” Us, the world’s largest toy retail chain, will open six stores in Bangkok over the next 12 months. Pieter Schats, chief executive of Toys “R” Us Asia Ltd, said the company would launch three major retail formats in Thailand: Toys “R” Us flagship, satellite and convenience stores. The number of stores will likely grow to as many as 13 in the next three to five years. The company is aiming high and expects sales of Bt500 million in its first year in business here.
“I’m delighted that Toys “R” Us is opening in Thailand and believe that Thai children will really enjoy the unique ‘Wow’ experience that Toys “R” Us brings to each of its stores,” said Schats. “We believe we’ll be successful in the development of the Bangkok investment portfolio over the next 12 months.” He said that the first Bt60-million Toys “R” Us satellite store in Bangkok will be opened on the sixth floor of the Central City Bang Na shopping complex in November, with retail space of 1,978 square metres. A second store will be opened in December on the first floor of the Carrefour super centre on Rama IV Road and will have a total retail space of 1,124 square metres.
The company also plans to open its first Toys “R” Us flagship store in Bangkok in the middle of next year at Central World Plaza on Rajdamri Road. Located on the fifth floor of the complex, the store will boast 2,268 square metres of retail space and will cost at least Bt80 million to build. Each convenience stores (under the moniker Toy Box or Toys “R” Us Express) will have 800 square metres of retail space.
“Parents usually bring their children to our Toys “R” Us ‘destination’ stores [flagship or satellite stores] for special occasions like a birthday, while our convenience store format will serve them for routine shopping,” Schats said.
Toys “R” Us will divide its toy merchandise into seven major zones: boys, girls, family fun and games, learning, babies and toddlers, electronics, and sports and outdoors. The stores will carry more than 10,000 items across 500 categories of toys, more than half of which are exclusive to Toys “R” Us.
According to Schats, Toys “R” Us will hold a media conference in the Philippines today to launch its toy store chain there later this year. The company will also enter China in 2006 or early 2007.
He said that the company aims to open more than 50 Toys “R” Us stores in Asia (excluding Japan) by the end of 2007. The company currently operates 36 outlets in Hong Kong, Taiwan, Malaysia and Singapore. Thailand will be the fifth country in the region to have Toys “R” Us stores.
Jeremy Hobbins, group managing director of Li & Fung (Retailing), which is licensed to operate and develop the stores in Asia, said that his Hong Kong-based company has three distinct operations: trading and marketing logistics, consumer products manufacturing, and speciality retailing.
In Thailand, Li & Fung acquired trading firm Inchcape in 1995. The group also acquired Borneo Co and Anglo Thai Co in 1999, making it one of the largest trading and supply-chain management outfits in the Kingdom. The group has a large distribution centre and logistics facility at Bang Pa In in Ayutthaya.
“Our strong foothold in trading and logistics in Thailand will help the Toys “R” Us business here for local sourcing of toy merchandise in Thailand,” said Hobbins. He added that about 15 per cent of the merchandise at Toys “R” Us stores in Thailand would be locally made.
Manit Lertsakornsiri, country manager of Toys Retailing (Thailand) Ltd, said that the company would open no less than 13 stores in Thailand over the next three to five years.
“We also expect to generate sales of over Bt500 million in the first year,” said Manit.
Originally Posted by klongmaster
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